The Following Information Is for a Private Closed Economy,where I_g

question 148

Multiple Choice

The following information is for a private closed economy,where I_g is gross investment,S is saving,and Y is gross domestic product (GDP) .
I_g = 80
S = -80 + .4Y
-Refer to the above information.In equilibrium,consumption will be:

• A) $400
• B) $280
• C) $320
• D) $360

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Definitions:

Perpetual Inventory System

An accounting method that records inventory transactions in real-time, thus providing a continual account of inventory balances.

Net Price Method

The net price method calculates the final price after all discounts, rebates, and allowances have been subtracted from the list price.

Catalog Price

The price listed in a catalog, not accounting for any discounts or promotions.

Credit Terms

Credit Terms are the payment terms and conditions established by a seller, including the period that has to pass before an invoice is considered overdue.